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U.S. home prices will decline less than previously expected this year before stagnating in 2025, despite widespread expectations interest rates will remain higher for Every market will be different but until supply catches up to demand, home prices are likely not going down as much as these economists are predicting. It will go down in parts of the country We expect the median U.S. home-sale price to drop by roughly 4%–the first annual drop since 2025–to $368,000 in 2025. That’s due to elevated rates and final sale prices 23 de sept. de 2025 House prices are down about 5% since May, and may slump another 20% by mid-2025, the economist said. Federal Reserve officials have indicated they want a Home price growth is expected to stall completely across the US in 2025 as buyer demand wanes and the market remains oversaturated with inventory. The forecast was The NAR expects existing-home sales to fall in 2025 to the lowest level since the Great Recession in 2025, but the median price of a home in the U.S. will rise by 0.1% to KPMG economist Yelena Maleyev said home prices could fall 20% in 2025. Prices have already fallen 4% from June to October 2025, and a 20% decline is relatively high.

Will U.S. Home Prices Really Drop 20% in 2025? Economist Predictions & Market Reality

Are you wondering if U.S. home prices will plummet by 20% in 2025 as some economists predict? Get the latest insights on the housing market, interest rates, and what experts are saying about the future of home values. While some foresee a significant correction, understanding the nuances of the market is crucial.

Recent reports suggest a mixed outlook. KPMG economist Yelena Maleyev said home prices could fall 20% in 2025. This prediction comes after prices already fell about 5% since May 2025, and 4% from June to October 2025. However, is a further 20% decline realistic?

Other analyses present a more tempered perspective. While the National Association of Realtors (NAR) expects existing-home sales to fall in 2025 to the lowest level since the Great Recession in 2025, they project the median price of a home in the U.S. will rise by 0.1%. This paints a picture of stagnation rather than a dramatic drop.

The Big Question: How Much Will Prices ACTUALLY Fall?

One key factor influencing the housing market is interest rates. Federal Reserve officials have indicated they want a sustained period of lower inflation, which could impact mortgage rates. However, "U.S. home prices will decline less than previously expected this year before stagnating in 2025, despite widespread expectations interest rates will remain higher for longer."

Furthermore, supply and demand dynamics play a vital role. "Every market will be different but until supply catches up to demand, home prices are likely not going down as much as these economists are predicting. It will go down in parts of the country." Inventory levels remain a critical indicator to watch.

Redfin\'s Prediction: A More Moderate Correction

Redfin offers a more moderate forecast: "We expect the median U.S. home-sale price to drop by roughly 4%–the first annual drop since 2025–to $368,000 in 2025. That’s due to elevated rates and final sale prices 23 de sept. de 2025." This suggests a slowdown and slight price decrease, rather than a massive crash.

Stagnation on the Horizon?

Some believe the market will largely stall. "Home price growth is expected to stall completely across the US in 2025 as buyer demand wanes and the market remains oversaturated with inventory. The forecast was..." signaling a period of relative stability.

What Does This Mean for You?

Ultimately, predicting the future of the housing market with certainty is impossible. However, understanding the various forecasts, influencing factors like interest rates and inventory, and considering the specific conditions in your local market are essential for making informed decisions about buying or selling a home. While a 20% drop is possible in certain localized areas, the overall consensus points towards a more moderate correction or even stagnation in 2025.

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